The Outdated Sourcing Methods That Could Be Holding You Back

Over the most recent prosperous years, the deal space has experienced an increase in smaller firms and independents.  We’re all accomplishing more with less. 

Professional investors are well known for asking their portfolio companies to “tech up” to lower costs.

Isn’t it ironic that many of those firms and buyers themselves rely on outdated internal applications and technology?

This especially that holds true when it comes to deal sourcing.

We hear it all the time from our clients and partners: “Origination is the #1 pain point.”

Whether you’re a mid sized PE firm, or a small shop or independent sponsor, the goal is the same:

Acquire more deals while minimizing your investment of time and capital.

How can this be accomplished? 

Follow the path of your portfolio companies (and every other business) and leverage technology more often. We can all improve on Alexander Bell, the penned letter and expensive in person networking lunches.

We know from experience. As former investment bankers and private equity professionals, we were the first to disrupt the old model of sourcing companies to acquire. A big part of our success came by leveraging technology.

With a fully leveraged research desk, large annual data buys and algorithmic email technology, we have developed more advanced methods to deal sourcing.

You won't see us:

Making phone calls to source deals

After running calling campaigns for a number of years the data become clear - the ROI on productive digital sourcing campaigns was measurablely higher.  We keep clients happy by generating results, and calling simply does this at a lessened rate.

Sending physical mailers

While mailers still can produce lead flow, the lack of data visibility makes informed decision making almost impossible. Having the ability to track and target interested parties significantly increases conversion rates and is almost always less expensive, and scales more easily.

Knocking only once

Dealmakers (this also stretches to include M&A firms) are often guilty of conducting large scale outreach to leads en mass, neglecting to commit to thoughtful, consistent follow ups.  With only so many viable middle market targets, and an ever increasing buyer pool, PE and M&A firms alike need to be prepared to build long term pipelines, starting with ongoing, email-based origination campaigns.

To learn more about our unique Deal Origination services, click here.